Who’s Looking at Your Credit Report?

One of the things that you need to realize is that your credit report is a way for others to judge your level of financial responsibility. So, who’s looking at your credit report? You might be surprised.

Lenders

The most obvious group of people who are likely to check your credit is lenders. It’s fairly obvious why lenders want a look at your credit report. Your credit report contains information about the way you have handled loans in the past, including your payment history. Lenders can even get a month by month look at how you’ve been paying your credit cards.

If a lender wants to get an idea of how reliable you are likely to be in repaying a loan, it makes sense to look at how you’ve behaved in the past.

Insurers

It’s not just lenders who look at your credit report. Insurers might also look at your score. Some insurers want to get your information to try and pitch you to switch coverage or buy some product or service.

Others, though, want to check your credit, since there are some studies that indicate that those with good credit are likely to be careful drivers as well. A good credit history can mean lower insurance premiums. This practice isn’t allowed in all states, but it’s one that is followed in some places.

Landlords

No, you’re not borrowing money when you try to rent an apartment or a house. However, some landlords still want an idea of whether or not you are going to cause trouble when the rent is due. As a result, it’s not really that surprising to discover that some landlords check your credit before agreeing to let you rent from them. If you have poor credit, you might have to pay a larger security deposit, or you might be denied altogether.

Telecom Service Providers

This is another surprise to many people. However, some service providers get information about your fitness for certain offers by buying marketing lists from credit bureaus. When you apply for cell phone service, Internet service, and cable/satellite service, you might have to submit to a credit check. Once again, you might have to jump through some extra hoops in order to qualify for service, or get the plan arrangement that you are interested in.

Employers

This is something that outrages many consumers. An employer can actually look at your credit report. It’s important to note that before they can check your credit report, they need your permission. Additionally, the credit report is supposed to be a special employer version. Even so, it’s surprising to many that some employers would include a credit report check as part of the background check process.

You can always refuse, but then you run the risk of being thought to be hiding something. You might not get the job if you refuse.

It might not be fair, but there are plenty of people checking into your credit situation, and using your credit report to make judgments about your character — beyond just determining whether or not you are likely to responsible with your money.